Progress Presented below is information for Sunland Company for the month of January 2022. Cost of goods sold $278,000 Rent expense $30,000 Freight-out 7,300 Sales discounts 5,300 Insurance expense 12,400 Sales returns and allowances 13,000 Salaries and wages expense 48,000 Sales revenue 432,000 Prepare a multiple-step income statement.

Question

Business

Giana Frey

17 January, 11:03

Progress Presented below is information for Sunland Company for the month of January 2022. Cost of goods sold $278,000 Rent expense $30,000 Freight-out 7,300 Sales discounts 5,300 Insurance expense 12,400 Sales returns and allowances 13,000 Salaries and wages expense 48,000 Sales revenue 432,000 Prepare a multiple-step income statement.

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Answers (2)

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Martin Baker · Answer 1

Sunland Company

Income statement for the year ended December 31, 2020

Amount in $'000

Sales 432

Less;

Sales returns and allowances (13)

Sales discounts (5.3)

Net Sales 413.7

Cost of goods sold (278)

Gross profit 135.7

Operating expenses

Freight-out (7.3)

Salaries and wages expense (48)

Rent expense (30)

Insurance expense (12.4)

Net Income / (loss) 38

Explanation:

A multi-step income statement is one in which the elements of incomes and expenses are grouped into operating and non-operating heads.

Operating income and expenses are those that are directly related to the ordinary activities of the entity

Yosef Reese · Answer 2

Net profit $38,000

Explanation:

Sunland Company

Multiple - step Income statement

$

Sales revenue 432,000

Sales returns (13,000)

Net sales 419,000

Cost of goods sold (278,000)

Gross profit 141,000

Expenses:

Rent 30,000

Freight-out 7,300

Insurance 12,400

Sales discount 5,300

Salaries and wages 48,000 (103,000)

Net profit 38,000